I am a person(individual) not assessed to tax has won a prize in a competition conducted on the internet.The winner was selected by draw of lots and the lots consisted of people who have given correct answers for a specific question.The composition of the prize was entirely in kind and its worth is Rs.2,00,000.My question is,
1. What will be the tax implication in the hands of the prize winner?
2.What will be your answer if the prize winner is a minor?
3.Is the person, who gives away the prize, liable to deduct TDS? If so, in what cases, in what manner (that is, should the prize giver collect tax from the prize winner at the time of distributing the prize) and at what rate?
4.If there is a liability to deduct tax at source, and the person who gives the prize has failed to deduct the same, then what will be the tax implications in the hands of the prize distributor?
CAclubindia
